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2019 (3) TMI 1884 - AT - Service TaxCENVAT Credit - input services - Management Consultancy Service - effect of amendment of the definition of input service w.e.f. 1-4-2011 - HELD THAT:- Under the unamended provisions (effective up to 31-3-2011), the phrase ‘activities relating to business’ was specifically finding place in the inclusive part of the definition of ‘input service’. The inclusive definition in a fiscal statute is a well recognized device to enlarge the meaning of the word defined and it expands the meaning of the basic definition. If the expenses incurred by the assessee for using the disputed services are meant for accomplishing the business activities and also the same form part of the cost of the ultimate services provided by it, then the same should be considered as ‘input service’ under such definition clause. The effect of amendment of the definition of input service w.e.f. 1-4-2011 is that certain services namely, Health Insurance, etc., were excluded from the purview of definition of input service, in the eventuality, when the said excluded category of service(s) are used primarily for personal use or consumption of any employee. Cenvat credit of service tax paid on such service(s) should not be considered as input service, entitling an assessee to avail Cenvat credit thereon - the nature of use of the disputed services as explained by the appellant was not properly addressed by the original authority in the impugned order passed by him - the ratio of the judgments relied upon by both sides to conclude that the Cenvat benefit on the disputed services would not be available to the appellant, not considered. The matter should be remanded to the original authority for a proper fact finding on issue of eligibility of Cenvat credit on the disputed services - other aspects involved in the case also require proper adjudication - Appeal allowed by way of remand.
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